AMC Networks Undershoots Wall Street Q2 Estimates

AMC Networks missed Wall Street estimates in the second quarter, with adjusted earnings per share of $1.93, compared with analysts’ consensus expectation for $1.97.

Revenue for the owner of cable networks including AMC, IFC and Sundance increased 7.2%, or $51 million, to $761 million, as the National Networks unit increased 3.7% and International and Other rose 32.4%. The results included $30 million of net revenue related to the acquisition of Levity Entertainment Group. The company also last month bought the portion of RLJ Entertainment it did not already own, bringing streaming services such as Acorn TV into the fold.

Distribution revenue, a key metric, increased 5.8% to $380 million due to an increase in subscription revenue and content licensing revenues. Advertising revenues increased 0.6% to $247 million, as higher pricing was partially offset by lower delivery

Total subscribers increased 2% year-over-year, a figure that includes not only traditional carriage but also burgeoning direct-to-consumer offerings like AMC Premiere.

“In an environment that is rapidly changing, our strong track record, along with our size and our attractive price to distributors, will enable us to continue operating from a strong competitive
position, take advantage of growth opportunities, and create value for shareholders,” Sapan said.